TV networks welcome rebate, rule changes

Communications Minister Stephen Conroy said further announcements about the government’s response to the Convergence Review and media reform generally would be made next year.
Photo: Louie Douvis

by
Ben Holgate

The commercial free-to-air TV sector has welcomed the Gillard government’s decision to make the 50 per cent licence fee rebate permanent and scrap the reach rule for licence owners.

Communications Minister
Stephen Conroy
announced on Friday the government would extend the TV licence fee rebate, which expired on June 30, for 2012-13. After that, the fee will be set permanently at 4.5 per cent of revenue.

Nine Network managing director Jeff Browne said while the industry would continue to press for a lower percentage of revenue, he congratulated the government for “bringing this long-running issue to a conclusion".

Mr Browne also welcomed the abolition of the reach rule, which prevents a TV licence holder from reaching more than three-quarters of the population. It “doesn’t make sense" in the digital age, he said.

This will enable metropolitan TV networks to merge with their regional affiliates, such as Ten Network with Southern Cross Media, and Seven West Media (which owns the Seven Network) with Prime Media.

Under the new local content rules, which apply from January 1, the TV networks will retain the current quota for 55 per cent of programming on the main channel to be local, but they will have increased flexibility for sub-quotas (drama, children’s and documentaries).